toyota production system lean
TRANSCRIPT
8/6/2019 Toyota Production System Lean
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Lean Manufacturing
Mahesh Ghanekar
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Toyota, Nagoya, Japan : Pioneers in modern Lean Management
Lean Manufacturing
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ABC of Lean Manufacturing
• Customer is not dependent on us, we are
dependent on him.
• He is the purpose of it. He is not an outsider in
our business.
• We are not doing him a favor by serving him,
but he is doing us a favor.
- Mahatma Gandhi
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Changeover
Changeover
M o n d
a y
T u e s d a y
T h u r s d
a yW e d n
e s d a
y
F r i d a
y
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Toyota’s Dramatic Business Success
Toyota’s annual profit at the end of fiscal year in March 2003 was $8.13
billion – Larger than the combined earnings of GM, FORD and
CHRYSLER.
Market capitalization of $105 billion as of 2003 – Higher than combined
market capitalization of GM, FORD and CHRYSLER.
In Aug 2003 Toyota sold more vehicles than Chrysler to become worldsthird largest Auto manufacturer. Camry was the top selling passenger car
in US and corolla is top selling small car in world. Lexus was introduced in
1989 and outsold BMW, Cadillac and Mercedes-Benz in 2002.
Toyota best in its class for high quality, high productivity, flexibility and is
top of quality ranking by J.D. Powers and Consumer reports.
Invented “Lean production which has triggered global transformation”.
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Sakichi Toyoda, learned Carpentry and applied that skill to design
wooden spinning machines.In 1926 stated ‘Toyota Automatic Loom Works’ (Mistake proof
looms) which became popular model.
Toyoda’s son Kiichiro, negotiated patent rights to Platt Brothers
and build a capital of 100,000 English Pounds for building the
Toyota Motor Corporation, 1st car built in 1936.
Visit to US automobile plants and Development of ‘One piece
flow’, a core principle
In 1948 Toyota’s debt was eight times higher than its total capital
value, they created system that changed the world.
At Toyota Motor Company, Taichii Ohno and Shigeo Shingo,
began to incorporate Ford production and other techniques into
an approach called Toyota Production System
Toyota Flashback
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Objective of enterprise
Increase Profit…
Conventional equation….
Selling price = Cost + Profit
Redesigned equation….
Profit = Selling price – Cost
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General Cost Cutting initiatives (reactive)
Cut costs on…..
Training
Travel
Telephones
Perks
Etc..
Does it serve the purpose?
Answer is simply NO
These methods don’t attack the root cause.These methods don’t attack the root cause.
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Cost Matrix
Processing – Useful job from
customer pointof view. (VA)
Conveyance Do not
Inspection add value
Stagnation to customer.
(NVA’s)
Remove waste
Actual movement for reducing cost.
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Concept of 3MMUDA – Waste
MURA – Inconsistency/ Imbalance
MURI – Strain
MURA
MUDA
MURI
The Heart Of Toyota Production System
(Eliminate Waste)
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Work
MUDA
Elimination of MUDA (waste)
What is MUDA ?
Operation = Work + MUDA
Work = VA activities (Increases Value of product.)
MUDA = NVA activities (Increases Cost of Product.)
MUDA
Work
KAIZEN =(Improvement)
Efforts Density Effectiveness = Work
Work + MUDA
To 100%
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MURA = Unevenness
Will add cost of Variation in Quality.
Unbalanced Capacities of Various Machines.
People are too busy in one area and too idle in
another. Uneven Training & Instructions.
Irregularity in Tooling Quality.
Using Equipment unreasonably or wastefully.
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MURI = Strain
Will add cost of Trying to use low precision equipment for high
precision processing.
Running machines beyond its designed capabilities.
Strained postures for working.
Doing a work manually that ought to be done bymachines.
Strain due to poor designs.
Increased workload due wastages.
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MUDA (Waste)
MUDA of OverproductionMUDA of Stock. (Inventory)
MUDA of Conveyance. (Transport)
MUDA of Waiting. MUDA of Operation Itself.
MUDA of Undesired Movement of worker.
MUDA of Production of inferior goods.
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Raw
materials
Time Finished
Parts
Time
Casting
Transportation
StagingSetup
Machining
Inspection Assembly Staging
Value addingactivities
Non Value
adding activities
Reduce time of
Value addingprocessReduce time of
Non Value adding
process to improve
productivity
Traditional vs. Lean improvement
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4 P Model
Toyota Production System
TPS House
TPS : 14 Principles
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Principle 1 : Take Management Decisions On Long Term
Philosophy, Even At The Expense Of Short Term Financial Goals
Mission statement comparison
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Principle 2 : Right Process Will Produce the Right Results
Create continuous work flow (One piece flow) to bring the problems
to surface
Faster means better flow
Importance of TAKT TIME
Blow up “process islands” andcreate work cells that aregrouped by product, rather thanprocess.
Make One Move One
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Principle 3 : Use Pull System To Avoid Overproduction
Inventory is necessary to allow for smooth flow of material, but can
lead to overproduction and create large banks of inventory
Origination of KANBAN
‘Scheduling systems’ are to be replaced with ‘pull-replenishment
systems’
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Eliminate : Muda, Mura, Muri
Work to the customer demand
Principle 4 : Level Out the Workload (Heijunka)
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M o n d
a y
T u e s d a y
T h u r s d
a yW e d n
e s d a
y
F r i d a y
A Typical manufacturing schedule of work to customer demand
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Principle 5 : Build a Culture of Stopping to Fix Problems, to Get
Quality Right the First Time
Philosophy of Stopping or Slowing Down
Andon (Signaling System)
Modern Quality Assurance Methods
Jidoka (Equipments with Human Intelligence)
Stopping
Or
Slowing Down
High RFT Increased
Productivity
Counter Measures and Error Proofing
Poka Yoke
Simple Quality Control with Involvement of Team Members
Go & See, Analyze the Situation
Ask ‘WHY’ 5 Times.
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Principle 6 : Standardized Tasks are Foundation for Continuous
Improvement & Employee Empowerment
F. W. Taylor’s Initiation of Standardization
Role of Industrial Engineer
Three Elements of Toyota’s Standardization
TAKT Time
Sequence of Processes
Inventory to be Maintained
Involvement at the root level,
Empowerment of the workforce
Team work for better morale
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Principle 7 : Use Visual Control So No Problems are Hidden
Crisis Management Mentality
‘Hear no problems until the hidden problems jumped up and
bit you in the face’ Clean it Up and Make Visual
5 S - Seiri, Seiton, Seiso, Seiketsu, Shitsuke
Simple Visual Indicators to Show Deviations
One-paper Reports to online reports
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Principle 8 : Use Only Reliable, Thoroughly Tested Technology that
Serves Your People and Processes
Use Technology to Support People and Not to Replace Them
Use Human Technology and Systems Instead of New,
Unproven Systems
Reject or Modify Technologies that Conflict with Organization
Culture
Test the System Thoroughly, Plan it well and Implement it
QuicklyShoes Cleaning machine
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Principle 9 : Grow Leaders Who Thoroughly Understand the Work,
Live Philosophy, and Teach it to others
Growing your leader rather than purchasing them.
“Constancy Of Purpose”
Gary Convis: The first American President of Toyota Motor Manufacturing.
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Toyota Leadership Model
Group Facilitator
“You’re
empowered!”
Bureaucratic
Manager
“Follow The Rules!”
Task Manager
“Here is what to do
and how – do it!”
Builder of LearningOrganizations
“Here is our purpose
and direction – I will
guide and coach.”
General Mgt. Expertise In-Depth Understanding of work
Bottom-Up
(Development)
To
p-Do
wn
(Directiv
es)
Toyota Leaders
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Principle 10 : Develop Exceptional People and Teams Who Follow
Your Company’s Philosophy
Developing excellent individual work while promoting
effective team work. Increase job satisfaction
Developing Teams at Toyota: Not a One- Minute
proposition
Work Groups are the focal point for solving problems.Motivation theories : Internal motivation
Satisfy lower level needs : Job security, good pay, safe working
conditions, etc.
Eliminate “dissatisfiers” and design work to create motivators (5S,
ergonomics, HR policies, job rotation, continuous improvement).
Motivation theories : External motivation – Reward, Scientific
Management, Rapid feedback, Goal setting ,etc.
P i i l 11 R t Y E t d d N t k f P t d
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Principle 11: Respect Your Extended Network of Partners and
Suppliers by Challenging Them and Helping Them Improve
Find Solid partners and Grow together to Mutual Benefit in the
Long Term
Cross Docking
Partnering with suppliers while maintaining internal capability
Working with suppliers for mutual learning of TPS.
Jishuken : Voluntary study groups
Operations Mgt. Consulting Division (OMCD)
Toyota Supplier Support Center (TSSC)
Saving “Sick” Suppliers Through TPS
Supplier ratings from 1 to 5
“Supplier Improvement Committee”
Developing Extended Learning Enterprise Means Enabling Others
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Fair and Honorable Business Relations
Stable, Reliable Process
Enabling Systems
Clear Expectations
Learning
Enterprise
P r o
g r e
s s i n
g N e e d
S a t i s
f a c t i o
nR e g r e s s i n
g N
e e d S a t i s f a
c t i o n
Stability
Next Level of
Improvement
Supply Chain Need Hierarchy
Identify and develop suppliers which will enable JIT. This will help site selection
P i i l 12 G d S f Y lf t Th hl U d t d
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Principle 12: Go and See for Yourself to Thoroughly Understand
the Situation (Genchi Genbutsu)
‘Data is of course important in manufacturing, but I place thegreatest emphasis on facts.
- Taiichi Ohno
‘Without data all everyone has is an opinion’
- - Edward Deming
Deeply understanding and reporting what you see
Ohno Circle : Watch and Think for yourselfThink and speak based on personally verified data.
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Principle 13 :Make Decisions Slowly By Consensus, Thoroughly
Considering All Options; Implement Rapidly
Thorough Consideration In Decision Making
Decision making- A major re-education process
How you arrive at a decision is just as important as the
quality of the decision.
“Leave no stone unturned; in fact inspect each stone
under a microscope”
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Broadly Consider Alternative Solutions With A Set Based Approach,contingency planning
Managers are trained to think in sets of alternative solutions
‘Set Based Concurrent Engineering’
Design of ‘Prius’
Competition of Design of Suspension System
Competition of Styling of Prius
Delaying Decisions– One of the hardest lessons
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Principle 14 : Becoming a Learning Organization- Hansei & Kaizen
LEARNING- Have capacity to build on your past and move forward
incrementally rather than reinventing the wheel with new personnel
with each new project
View errors as opportunities for learning
Innovations with standardization
Hansei: Self Reflection and Organizational Learning (Resp)
Being honest about your own weaknesses & Focus on the negatives
Directing and Motivating Organizational Learning- Hoshin Kanri
“You get what you measure”A process of Cascading Company’s objectives down to root
Establishing Target Matrix and evaluating against it.
Updating the performance DAILY
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Problem resolution funnel
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Canada Post Corporation: (Lean in Repetitive Service Corporations)
Mail lead time- 26hrs, distance traveled -167 mts.
Value added time- 12secs!!
Reduction by going lean-
28% travel time
37% lead time
27% storage
Ship builder: Macro value stream map
Genie Industries: From 5 inventory turns to 45 inventory turns
Borrowing from the Toyota Way
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Borrowing from the Toyota WayThe 13 tips:
1. Start with action in the technical system; follow quickly with cultural change
2. Learn by doing first and training second
3. Start with value stream pilots to demonstrate lean and provide a “go see” model
4. Use value stream mapping and help “learn to see”
5. Use Kaizen workshops
6. Organize around value streams
7. Make it Mandatory
8. A crisis may prompt a lean movement, but may not be necessary for turn around.
9. Be opportunistic in identifying opportunities
10. Realign metrics with a value stream perspective
11. Build on your company’s roots to develop your own way
12. Hire or develop lean leaders and develop a succession system
13. Use experts for teaching and getting quick results
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Myth
What TPS is Not
Reality
What TPS Is
A tangible recipe for success.
A management project or program
A set of tools for implementation
A system for production floor only
Implementable in a short or mid term
period
A consistent way of thinking
A total management philosophy
Focus on total customer satisfaction
An environment of teamwork and
improvement
A never ending search for a better way
Quality built in processOrganized, disciplined work place
Evolutionary
S
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Summary
“Continuous Improvement” & “Respect for People”- Two supporting
pillars of TPS
Focus on imbibing the value system and culture in the people
rather than imposing it.
Focus on quality; monetary gains, a derivative of it.
Unique and nurtured approach to Lean Management.
Emphasis on cultivation of the Talent Pool.
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Waste Reduction throughValue Stream Mapping.
TPS Principle 1 to principle 6 : Value stream mappingTPS Principle 1 to principle 6 : Value stream mapping
Current state Future stateCurrent state Future state
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VALUE
Product worth for which the customer pays.
VALUE STREAM MAPPING
LEAN MANUFACTURING
STREAM
Flow of material and information from RM to FP.
MAPPING
Pictorial representation of material and information flow
USE VSM as a tool to drive all types of improvements.
Value Stream Mapping
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Value Stream Mapping
Mapping of all actions (VA & NVA) required to bring aMapping of all actions (VA & NVA) required to bring a
product throughproduct through
- Supplier to customer (Manufacturing)- Supplier to customer (Manufacturing)
- Concept to Launch (R & E)- Concept to Launch (R & E)
- Order to Cash (Marketing)- Order to Cash (Marketing)
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Basic contents of VSM
Process flow
Information flow
Lead Time
For charting VSM, effective icons are used.
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Value Stream Mapping.
Helps you visualize more than the single process level.
Links the material and information flows.
Provides a common language.
Li it ti f V l St M i
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Limitations of Value Stream Mapping.
Fails to handle multiple products that do not have identical
maps. Fails to relate transporting and queuing delays.
Lacks conversion into economic measure i.e. value of theproduct.
Fails to consider allocation and utilization of importantresource like floor space.
Fails to show criss-cross movements and non-sequentialflow.
7 steps to Value Stream Mapping
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7 steps to Value Stream Mapping
1. Select a product or product family:
2. Evaluate material/ information flow : Macro and Micro
3. Study layout/ flow for optimization.
4. Process Analysis: Method Time Study of every operation or
process step in detail.5. Data Collection : Process, Information flow & Inventory (Raw
material, WIP & F.G.)
6. Map current value stream with ICONS.
7. Evaluate Capacity by C/T and Effective C/T
1a) Select Product family/ processes to improve
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1a) Select Product family/ processes to improve
1)Identify improvement priorities w.r.t. goal tree
20% processes in your company which brings 80% revenue,
resources, cost increase, time increase, etc
20% of the customers mean 80% to you in terms of satisfaction
Top 20% project types/ processes having long lead time (order to
delivery, concept to launch, delivery to payment receipt. etc)
2) Carry out product and process route analysis.
3) Regroup products and process according to the process flow
1b) P t l i
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1b) Process route analysis.
1 2 3 4 5 6 7 8
A X X X X X
B X X X X X X
C X X X X X X
D X X X X X
E X X X X X
F X X X X X
G X X X X X
Process Steps & Equipment
P R O D U C T E S
A Product
Family
2) Evaluate material/ information Flow
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1 Day
Supplier
xxxx
Avg.Inventory=
Build rate - xx/day
Storage
Dock (Shop height)
Waiting - 1 hrs
Unloading
Receipt
Batch size -xx
Replenishment - Daily
XX Machining
Build Rate -xxdayForklift No. 3
Distance - 140 feet Forklift No. 2
Distance - 670 feet
Forklift No. 1
Distance - 75 feet
Total Travel - 885 ft
Swim Lane Process Mapping – Purchase Order
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User 1
User 2
User 3
User 4
User 5
Manager 1
Store
Head
Supplier
PlantMachinebreakdown
pp g
MaterialRequirement
Material issuerequest
Material requestreceived
Material issued
Material used forMachine
MaterialRequirement
Material issuerequest
PRraised
PRraised
PRApproved
PO Received& Materialsent
Materialreceived &Stored
CentralT
eam
3) St d l t / I f ti fl f ti i ti
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3) Study layout / Information flow for optimization.
Space wastages/
Unnecessary facilities/ machines / workstations/ counters
Identify time-space wasters, etc.
4) Process Study (manufacturing or non-manufacturing)
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4) Process Study (manufacturing or non-manufacturing)
Actual Utilization of machines.
VA/NVA activities during machining cycle.
Operator utilization during Cycle Time
Bottleneck analysis
4 ) A t l hi tili ti
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4a) Actual machines utilization
NVA Activities shown includes queue wait times, waitingtimes, unnecessary information fill-up, etc which are to beminimized to maximum possible extent.
Operationwise VA-NVA activities for one shif t
0%
20%
40%
60%
80%
100%
10 20 30 40 50 60 70 80 90 100
Op no
Non Value
added time
Value added
time
NVA Activities shown includes set-up time, tool change time,which are to be minimized to maximum possible extent.
4b) VA NVA A ti iti ithi th l ti
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VA-NVA Activitie
0%
20%
40%
60%
80%
100%
Op #10 Op #20 Op #30 Op #40 Op #50
Operation n
T i m e %
Non Value
added activitie
Value Added
activities
4b) VA-NVA Activities within the cycle time
NVA activities : Dwell, Index, Tool change, etc.
4 )4 ) O t tili ti d i lO
t tili ti d i l
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4c)4c) Operator utilization during cycleOperator utilization during cycle
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170
Operations
T i m e
( m i n )
MA
OL
OF
Man Time(OL+OF) =
Machine Time (MA) =
min
min
41.048
58.317
Machine Auto
Machine Auto
On Line
Offline
Online – offline processes
4d) Bottleneck Analysis
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4d) Bottleneck Analysis
0
20
40
60
80
100
120
140
160
180
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Operat ion
C a p a c i ty a s p e r F /F c y c l
R e q u i r e d c a p a c i ty
Cycle Time (C/T)Effective Cycle =Time (RFT) x (U/T)
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Manual Information Flow 6) Mapping Icons
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Electronic Information Flow
Schedule
Signal Kanban
Withdrawal Kanban
Production Kanban
Kanban Arriving in Batches
Kanban Post
Load Leveling
) pp g
Material Flow Icons
Process Outside Sources
Data
Box
Truck ShipmentPUSH Arrow
Finished Goods
to Customers
Inventory
First-In-First-Out
Sequence Flow Supermarket
Withdrawal
General Icons
“Go See”
Scheduling
Sequence-Pull Ball
Buffer or Safety Stock
Operator
UPTIME
CHANGEOVER
Kaizen
Lightening Burst
AssemblyXYZ
Corporation
I…../day
F I F
O
MAX 50 PCS
Kanban Path
Kanban
arriving
in batches
C/T = .. sec
C/O = .. min
… shifts% scrap
Uptime
=
Opn.
Information Flow Icons
PPC6 week
F t90/60/30 day
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State Street
Assembly
-12,000 L
- 6,400 R
Tray – 20 pcs
2 Shifts
18400 pcs/month
Staging
I
2700 L
1400 R
C/T = 39 sec
C/O = 0 min
2 shifts
RFT 90%
U/T 100%
= 1
Assy. II
I
1200 L
600 R
C/T = 61 sec
C/O = 0 min
2 shifts
RFT 90%
U/T 100%
= 1
Assy. I
I
1600 L
850 R
C/T = 45 sec
C/O = 10
min2 shifts
RFT 75%
U/T 80%
= 1
Weld II
I
1100 L
600 R
C/T = 38 sec
C/O = 10
min2 shifts
RFT 80%
U/T 100%
= 1
Weld I
I
4600 L
2400 R
Daily
I
5 days
C/T = 1 sec
C/O = 60 min
2 shifts
200 Ton
U/T 100%
= 1
Stamping
Shared m/c
Tues/
Thurs
Michigan
PPC
MRP
Weekly
ScheduleDaily Ship
Schedule
Forecast
Weekly Fax
90/60/30 day
Forecast
Daily
Order
7.6 days38 sec 45 sec
1.8 days61 sec
2 days39 sec
4.5 days2.6 days1 sec
5 days
Lead
Time : 23.
daysValue Adde
– 183sec
Current State VSM (dd/mm/yy)
PPC6 week
Forecast90/60/30 day
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State Street
Assembly
-12,000 L
- 6,400 R
Tray – 20 pcs
2 Shifts
18400 pcs/month
Staging
I
2700 L
1400 R
C/T = 39 sec
C/O = 0 min
2 shifts
RFT 90%
U/T 100%
= 1
Assy. II
I
1200 L
600 R
C/T = 61 sec
C/O = 0 min
2 shifts
RFT 90%
U/T 100%
= 1
Assy. I
I
1600 L
850 R
C/T = 45 sec
C/O = 10
min2 shifts
RFT 75%
U/T 80%
= 1
Weld II
I
1100 L
600 R
C/T = 38 sec
C/O = 10
min2 shifts
RFT 800%
U/T 100%
= 1
Weld I
I
4600 L
2400 R
Daily
I
5 days
C/T = 1 sec
C/O = 60 min
2 shifts
200 Ton
U/T 100%
= 1
Stamping
Shared m/c
Tues/
Thurs
Michigan
Assembly
MRP
Weekly Schedule
Daily Ship
Schedule
Forecast
Weekly Fax
Forecast
Daily
Order
7.6 days38 sec 45 sec
1.8 days61 sec
2 days39 sec
4.5 days2.6 days1 sec
5 days
Lead
Time : 23.
daysValue Adde
– 183 sec
Information
ManufacturingSup
ply
Mat
eria
lfee
d
14 days 4.5 days5 days
Supply Chain
Find out Root causes for problems
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d out oot causes o p ob e s
In Case of ACME Possible Causes….
Information delay.
Unnecessary controls.
No produce to customer demand.
Shared facility.
Setup time high on shared facility.
No group working (TBWS)
Value Stream Map Improvement
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Points to note :
1) Equal thrust required on all areas of Supply Chain for improvement.
2) Group working doesn’t necessarily mean reduction of manpower .
It’s a by-product of inventory reduction projects.
3) 80-20 analysis for inventory reduction projects for deciding the
priority of implementation.
4) Categorization of project into “Management Control” and “Group
working”
5) Further categorization of projects into “Investment” Vs “Zero
investment” projects can be done.
6) Emphasis should be on Single Piece Flow from supplier to
customer and waste reduction (in any form)
7) Simple Focused kaizen initiatives could increase productivity.
8) Senior management can focus on Value Stream Map with a global
perspective where as Frontline Leadership can focus on Process
Kaizen for internal processes.
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Inventory Hides Problems
Poor
Quality
Unreliable
Supplier
Machine
BreakdownInefficient
Layout
Bad
Design
Lengthy
Setups
Evolution of Super-Market concept for manufacturing
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Evolution of Super-Market concept for manufacturing.
Originated in USA
Taichi Ohno observed this system and adapted the principles to
manufacturing.
Supermarket
a) Just in time availability of all products as per customer
demand.
b) Inventory level Controlled within Super Market.
c) Replenishment supported by KANBAN.
Supermarket & Pull system.Sup
ermarket & Pull system.
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Customer goes to supermarket
and withdraws whatever he needs.And whenever he wants.
Super Market systematically replenishes whatever is withdrawn
p yp y
Purpose: - •JIT/ Pull System / Inventory control supported byKANBAN•This KANBAN pull acts as a way of controlling
production at supplying process.
SupplyingProcess
NewProduct
“PRODUCTION” Kanban
WithdrawnProduct
CustomerProcess
“WITHDRAWAL” Kanban
Supermarket
Concept of Supermarket
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Supermarket is a physical place where customer can get
What he needs.
At the time he needs.
In the quantity he needs. ---- JIT
Issues to address in management of the supermarket..
Where to keep supermarket?What to keep in the supermarket?
What should be the issue system?
What should be the re-order points? ---- KANBAN/ Pull
System
Same concept is applied to manufacturing activity.
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KANBAN concept
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KANBAN concept
What is KANBAN?
A simple visual tool which communicates the needs ofcustomer.
Carries information
What to produce.
How much to produce.
When required.
Where required.
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Kanban Production Control System
A Kanban is a card that indicates a standard quantity of
production (Production KANBAN, Withdrawal KANBAN)Kanbans maintain the discipline of pull production
- A production kanban authorizes production
- A withdrawal kanban authorizes the movement
of goods
KANBAN issue Systems
Two bin
Card KANBAN
Signal Kanban
How KANBAN works
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Customer
Assembly line Finish Goods Storage.
M
Sub-assembly line finish parts storage.
P
Assembly Parts Storage.
Purchase
d parts
Storage
M
Assembly
LineM
Manufactured Parts Storages
P
Sub-Assembly
LineSub-Assembly Parts
Storage.M
Raw Material and purchased parts storage.
P Manufacturing Shops
Suppliers
M
M
M
M
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A Sample Kanban
Machining
M-2
Assembly
A-4
Part no.: 7412
Description: Slip rings
From : To:
Box capacity 25
Box Type A
Issue No. 3/5
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Future Value Stream Map
(Target Date : dd/mm/yyyy)
Deriving Future State Map
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Step by step approach.
a) Decide TACT Time.b) Decide location of supermarkets.
c) Decide batch quantity & Kanban Quantity.
d) Define inventory levels in supermarkets.
e) Define start point of Continuous flow “Make one – Move one.” Define the
scheduling point.
f) Integrated Maintenance Management
g) List out and categorize Improvements Projects for developing value stream
map.
a) Define TACT : Time Available to Complete Task
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Time Available / shift
TACT =
Customer Demand / Shift
TACT for ACME
Available Time = 510-30-10-10
( per shift) = 460 min
Production rate required per shift
= 460 units/shift
460 min
TACT =460
= 1 min
= 60 sec
TACT = Takt (Japanese word for Rhythm)
TACT synchronizes pace of productionTACT synchronizes pace of production
59 sec.
59 sec.
59 sec.
59 secExample : .
b) Decide Supermarket location
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Determining the Supermarket Locations
Check where continuous flow part is disturbed.
Check where is the variability in the output or where are the shared facilities.Then based on the present scenario put supermarkets.
In Case of ACME
After Stamping there is continuous flow. This flow is disturbed at the shipmentarea since only one shipment / day.
Before Stamping also there is no continuous flow.So supermarkets are required at ..
i) At material receipt.
ii) After Stamping
iii) At Shipping
c) Decide batch quantity.
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Determining the Batch Quantity.
Check what is unit load transport.
Check what is customer requirement of batch.Check what is economic batch quantity for production purposes from setups pointof view.
In Case of ACME
Since customer requirement is in multiples of 20-bracket trays, this is the choice
for KANBAN size.Since 10 trays go on one pallet it’s a batch quantity.
Setup problem exists at stamping machine but it is then resolved by putting up asupermarket.
d) Inventory levels in supermarket.
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Determining size for supermarketsThis decision is more of a strategic type & with some logic.
Lets consider case of ACME
Supermarket 1 – Before stamping consider 0.5 day safety stock
(till we reduce the changeover time) +1 day rolling = 1.5 days.Supermarket 2 – After Stamping
Stamping is a shared facility, and setup time high. Also difference in
Stamping cycle time and TACT is very high.
So lets consider 1.5 day stock after stamping. (till we reduce changeover
time.)
Supermarket 3 – At Shipping area
Customer accepts the parts in a batch of 200 and as a requirement 920
brackets/day. For the next day there should be enough quantity so lets
consider 1.5 days stock at shipping.
e1) Single piece flow – Stage working I
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Stage working : Present
1
3938
6145
0
10
20
30
40
50
60
70
Stamp Weld I Weld II Assy. I Assy. II
C/T (sec)
Manpower = Total Time/ TACT
= 183 sec/60sec
= 3.05 (4 Persons)
TACT = 60 sec
TACT Line = 60 sec
Identify pacemaker
process.
e2) Single piece flow – Stage Working II
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Stage Work : Concept of effective C/T
1 1 38 394561
4875 68 44
0
20
40
60
80
Stamp Weld I Weld II Assy. I Assy. II
C/T (sec)
Ef fective C/T
Manpower = Total Time/ TACT
= 183 sec /60 sec
= 3.05 (4 persons)
TACT Line = 60 sec.
Cycle Time (C/T)Effective Cycle =Time (RFT) x (U/T)
e3) Single piece flow – Stage Working III
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Stage working : Before
139
6138 45
0
10
20
30
40
50
60
70
Stamp Weld I Weld II Assy. I Assy. II
Group working : Phase I
138 5045 50
0
10
20
30
40
50
60
Stamp Weld I Weld II Assy. I Assy. II
Manpower = Total Time/ TACT
= 183 sec/60sec
= 3.05 (4 Persons)
TACT = 60 sec
Manpower = Total Time/ TACT
= 183 sec /60 sec
= 3.05 (4 persons)
TACT Line
TACT Line
Aim : Define group working.
e4) Single piece flow – Stage Working IV
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Aim: Productivity Improvement
How : Identify Kaizen’s in that would
help in this direction.
How much:
1) Total time 183 min (excluding
Stamping)
2) Manpower requirement – 3.06
3) Plan for Kaizen's to reduce 4 work
stations to 3 to be manned by 3
operators.
Kaizen's Required :
1) Total work <180 sec.
2) Weld change over time reduction.
3) Welder uptime increase.
KaizenBurst
Manpower Required
= Total Work content
TACT= 170 = 3 persons
60
Group working : Phase I
1 56 57560
10
20
30
40
50
60
Stamp Station1 Station2 Station3
TACT Line
e5) Group working and Single piece flow.
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Four welding and assembly process boxes to
be combined into one process box.
It indicates continuous flow.
A small schematic sketch shows cellular
manufacturing idea.
C/T = 57 sec
C/O = 0 min
2 shifts
0% scrap
Uptime 100%
= 3
LH
RH
Stamping
f) Integrated Maintenance Management
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Maintenance Types
Planned Maintenance
Unplanned or breakdown Maintenance
TPM
Essentials of Plant Maintenance
Spares Management
Skilled manpower availability
Capable Equipments availability (Short term / long term)
MIS for MTTR and MTBF
Factors affecting maintenance management
Line Vs Batch production
Service level (MTTR and MTBF)
Planned Vs unplanned maintenance strategy, TPM
Capital expenditure, revenue budgets
In-house Vs External maintenance
Why Maintenance Management
Why maintenance management
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Why maintenance management
Productivity
Quality
Cost
Delivery
Maintenance Types
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1. Planned Maintenance Strategies
Proactive approach
Scheduled maintenance
Online and Offline maintenance concept
Costs
1. Unplanned or breakdown Maintenance
As breakdown happens, reactive
Make Available right people at right time
Spares management becomes critical
Administration & costs
1. TPM
Active involvement of the associate/ worker w orking on the particular machine
Work as a team with Maintenance
Autonomous maintenance by associate
Essentials of Plant Maintenance
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1. Spares Management
History Management
On time, Right time, Right quantity, Right Place
Optimized Inventory,
Spares Life Management, spares disposal
MRP for spares management
1. Skilled manpower availability Skilled manpower to be available at right time
Multi-skilling is the key
Can be hired but at additional cost
1. Capable Equipments availability (Short term / long term)2. MIS for MTTR and MTBF
Evaluate and track MTTR/ MTBF
Monitor and Launch improvement projects to improve
Kano Diagram : Spares Management
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DissatisfiedFeeling
SatisfiedFeeling
PhysicallyFulfilled
Condition(Need is met)
(Need is not met)
" O n e
D i m
e n s i o
n a l " Q u a
l i t y
Kano Diagram : Spares Management
•Reduction in spares inventory.•Reduction in obsolete spares
inventory.• Auto requisition generation based on MRP• Access to spare master from any desktop• Disposal of spares associated with machine in
case of any machine disposal.
• Machine wise Spares consumption tracking.• Centralized Spares purchasing cell.
• Decision support for what / when and how much toprocure..
• Machine wise critical spares list availability.
• Various MIS reports.
Factors affecting maintenance management
1
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1. Line Vs Batch production
Different resources for line Vs Batch production
Different strategies for improvement
1. Service level (MTTR and MTBF)
Zero Breakdown - What is service level expected
How critical – define before establishing processes
Decide internal and external Support
1. Planned Vs unplanned maintenance strategy, TPM Planned maintenance is desirable always
TPM improves MTBF
Its proactive
1. Capital expenditure, revenue budgets : Need to decide first
2. In-house Vs External maintenance
Outsourcing is the strategy, or need of the hour.
May outsource if In-house capability is unavailable, Less capacity
problem can be solved by improvements.
Based on Value Stream Map priority complete uptime improvement projects
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PPC
Michigan
Steel Co.Daily Order
6 week forecast
State Street
Assembly
90/60/30 dayForecast
D il
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Stamping
Daily
Coils
I
Daily Order
LH
RH
LH
RH
C/T =180 sec
C/O = 0 min
2 shifts
0% scrap
Uptime 100%
= 3
Weld+Assy
20
Staging
Shipping
tote
1 sec1.5 days
Lead Time :
4.5 days
Value Added
– 180 sec
1.5 day180 sec
1.5 days
Assembly
-12,400 L
- 6,400 R
Tray – 20 pcs2 Shifts
18400 pcs/month
Daily
Daily
Order
20
Daily Order
Load Leveling
20Batch
SMED
ACME Improvement Summary
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(Days) Coils Stamped
parts
Weld/
Assembly
Finished
Goods
Production
Lead Time
Total
InventTurns
Before 5 7.6 6.5 4.5 23.5
After 1.5 1.5 0 1.5 4.5
ACME stamping Lead Time Improvement
"If you can reduce your lead time by 75%, your productivity will
be doubled and your cost per unit will go down by 20%." - Rick
He calls this the 75/2/20 Rule.
- X’ Manager in assembly at Toyota Motor, Georgetown, KY.
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Advantages of Value Stream Mapping.
1. Relates to supply chain.
2. Links all the resources to customer requirements.
3. Provides blueprint for strategic planning.
4. More useful than quantitative tools
5. Ties together lean concepts and techniques.
6. Uses Basic IE techniques for analysis.
Misunderstanding about VSM
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1. VSM does not equal “flow analysis” or the process of designing
and creating optimum product flows
2. VSM, or Takt time, or “lean flow,” is only useful in highly
repetitive, high volume, low variety manufacturing
3. People tend to confuse between Pacemaker process and
bottleneck.
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It becomes our
“Next Current State Map”
Once we achieve Future State Map